tech

Jon Keegan6/18/25

Report: Musk’s xAI is burning through $1 billion per month

Elon Musk, the world’s richest man, has a history of burning piles of money in pursuit of eventual profits (see Tesla and SpaceX). The way he is running his AI startup, xAI, is no exception.

Bloomberg is reporting that Musk’s startup is spending $1 billion per month as it builds out its massive AI supercluster known as Colossus.

According to the report, Musk isn’t expecting to achieve profitability until 2027, when the startup is projecting $5.4 billion in revenue, and is borrowing $3.9 billion to keep stoking the cash bonfire. xAI — which now also owns the social network X — is still looking for revenue streams that can cover huge capex spending and high operating costs for the company’s only product, the Grok AI model.

Musk’s xAI Burns Through $1 Billion a Month as Costs Pile Up

Musk’s xAI Burns Through $1 Billion a Month as Costs Pile Up

According to the report, Musk isn’t expecting to achieve profitability until 2027, when the startup is projecting $5.4 billion in revenue, and is borrowing $3.9 billion to keep stoking the cash bonfire. xAI — which now also owns the social network X — is still looking for revenue streams that can cover huge capex spending and high operating costs for the company’s only product, the Grok AI model.

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Matt Phillips10/28/25

Intel romps amid reported attempt to poach a 21-year Taiwan Semiconductor veteran

A report in the Taiwanese press that Intel is attempting to recruit a recently retired top Taiwan Semiconductor executive, Wei-Jen Lo, to lead R&D at Intel’s troubled foundry division may account for the bump in Intel shares Tuesday, one analyst told us.

A synopsis of the report from technology analysis and news outlet TrendForce News notes:

“If confirmed, the move could have significant implications for TSMC and the broader Taiwanese semiconductor industry, especially as Intel aggressively expands its foundry business with support from Washington and backing from tech giants like NVIDIA and SoftBank, the report adds.”

But some skepticism about Lo, 75 years old, returning to Intel, where he worked before joining TSMC in 2004, is also warranted, TrendForce says:

“Industry insiders cited by the report say it is unlikely he would join Intel again, given TSMC’s non-compete rules, Intel’s status as a direct competitor, Lo’s advanced age, health considerations, and his long-standing loyalty to TSMC founder Morris Chang. On the other hand, some industry observers warn that Lo, a U.S. citizen, would be difficult for TSMC to restrict, even with non-compete clauses.”

Intel shares have doubled over the last three months, since the US government took a 10% stake in the company in August. Intel is the best-performing stock in the S&P 500 over that period.

Intel Reportedly Eyes Retired TSMC Veteran Wei-Jen Lo, Advanced Node Pioneer, to Lead R&D

[News] Intel Reportedly Eyes Retired TSMC Veteran Wei-Jen Lo, Advanced Node Pioneer, to Lead R&D

“If confirmed, the move could have significant implications for TSMC and the broader Taiwanese semiconductor industry, especially as Intel aggressively expands its foundry business with support from Washington and backing from tech giants like NVIDIA and SoftBank, the report adds.”

But some skepticism about Lo, 75 years old, returning to Intel, where he worked before joining TSMC in 2004, is also warranted, TrendForce says:

“Industry insiders cited by the report say it is unlikely he would join Intel again, given TSMC’s non-compete rules, Intel’s status as a direct competitor, Lo’s advanced age, health considerations, and his long-standing loyalty to TSMC founder Morris Chang. On the other hand, some industry observers warn that Lo, a U.S. citizen, would be difficult for TSMC to restrict, even with non-compete clauses.”

Intel shares have doubled over the last three months, since the US government took a 10% stake in the company in August. Intel is the best-performing stock in the S&P 500 over that period.

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